PDF 25 MB - Sun International | Investor Centre

SUN INTERNATIONAL ANNUAL REPORT ’10
Sun International Employee Share Trust (SIEST)
The SIEST gives employees the opportunity to benefit from equity
ownership in Sun International Limited. The Trust, set up in 2003, owns an
effective 5.6% (for BEE measurement purposes, excluding 40% mandated
investments, equates to 9.3%) of the group’s shares and up to 3.5% in a
number of the group’s operating subsidiaries. The Trust has the benefit
of an interest free loan from the group of which to date it has repaid
R41 million leaving it with a balance of R103 million at 30 June 2010.
During the current year eligible, employees benefited from the SIEST via the
bi-annual distributions in October 2009 and April 2010 of R17.4 million in
aggregate, or R2 141 per employee. Since inception the Trust has distributed
R144 million in total or an aggregate amount of R20 000 per employee.
SIEST ELIGIBLE EMPLOYEES
SIEST distributions
78
Total
distribution
R
Dividend
per
participant
R
October 2009 9 405 597 1 164
April 2010 8 033 595 977
Total for the 2010 financial year 17 439 192 2 141
October 2008 20 652 499 2 650
April 2009 10 245 600 1 333
Total for the 2009 financial year 30 898 099 3 983
Total since inception 144 143 031 19 983
The Trust enables employees to share in the benefits of the good
performance of the group, empowering our people and encouraging a
spirit of ownership. All permanent full time and permanent scheduled
southern African employees with at least six months’ group service are
eligible. No directors, executives or senior managers who already participate
in group share incentive schemes are eligible to be beneficiaries of the Trust.
The Trust now has more than 8 200 employees as beneficiaries who benefit
by way of income distributions. These distributions are made in equal
shares, irrespective of seniority or length of service, to eligible employees at
the date of distribution. Bi-annual dividend distributions are paid net of
loan repayments and other liabilities. The estimated value of the Trust
shareholdings net of debt at 30 June 2010 is R374 million or R45 530 per
employee.
The Trust is administered by a board of trustees (currently 19), of whom
14 have been elected by employees from among their number, and three
nominated by Sun International, including professional advisors from the
group’s investment bankers and legal advisors.
Sun International Black Executive Management Trust (SIBEMT)
The SIBEMT was established as part of the group’s commitment to the
economic empowerment of black people and to retain and attract black
executive management. The Trust has an effective 0.7% interest in Sun
International, through Dinokana in which it has a 6% interest.
Dinokana holds no other interests other than its interest in Sun International.
The Trust’s shares in Dinokana are held in trust by trustees in terms of the
provisions of a trust deed regulating the conduct of the Trust.
A beneficiary is not entitled to encumber, dispose of or transfer any of the
Dinokana shares prior to the expiry of the lock-in period (i.e. 3 December
2014). The Trust may from time to time receive dividends and/or other
distributions from Dinokana. Beneficiaries are entitled to participate in
dividends declared by Dinokana.
If, after the expiry of the lock-in period, Dinokana has not unbundled its
shareholding in Sun International, participants may dispose of the Dinokana
shares to a willing buyer subject to any pre-emptive rights attaching to those
shares. Sun International will, in its discretion, assist beneficiaries to realise
their investments in Dinokana in terms of the rules of the scheme.